Natixis SA raised a $660 million collateralized loan obligation, Liberty Island Funding 2011-1, according to a person familiar with the transaction.
Natixis sold a $419 million piece rated Aaa by Moody’s Investors Service to investors and is holding on to a $241 million so-called equity portion, or the riskiest slice of the CLO, said the person, who declined to be identified, because the terms are private.
Natixis, New York Branch LLC will manage the fund and GoldenTree Asset Management, which oversees $14 billion, will serve as the collateral adviser, according to a Nov. 18 Moody’s report.
CLOs are a type of collateralized debt obligation that pool high-yield, high-risk loans and slice them into securities of varying risk and return.
The CLO is a so-called balance sheet fund, meaning that it is buying loans already held by Natixis.